Help in choosing logistics
Correct logistics of trading on the platform is another key of success. Out of stock means loss of the customer. To prevent this from happening, you can use several different tools, such as for example the Merchant Central Desktop, with which you can:
• check new orders,
• update resources,
• monitor performance indicators and much more.
Getting started on Amazon
If you are starting your adventure with Amazon, we will be happy to show you how to properly manage logistics and thus generate more profits.
Three sales systems on Amazon
Generally, we have three Amazon sales systems that define logistics issues. The first is FBA, or “Fulfillment by Amazon”. The service in this form significantly facilitates the daily work of sellers who do not fulfill orders on the sales platform themselves, leaving it to Amazon. The sellers then send their goods to Amazon and they are stored in the warehouses of the trading giant. When the order is launched, the package is prepared and sent directly to the customer, without the need for the seller to intervene.
The second popular model is MFN, or Merchant Fulfilled Network. In this option, the seller is responsible for the full delivery. This means the need to take care of storage space, packaging materials and staff.
The third option is a hybrid solution, i.e. entrusting storage and shipping to an external company other than Amazon. Our task is to assess the cost-effectiveness and competitiveness of each of these options.
FBA and MFN – what do these abbreviations mean?
Fulfillment by Amazon and Merchant Fulfilled Network. Both models relate to the form of sales on Amazon and define the basic logistics issues.
What are the benefits of the FBA model?
The main advantage is the elimination of logistics work on the seller’s side. You no longer need warehouse space, packaging materials, staff or time to fulfill orders. It’s not everything. The second benefit is the display of the Amazon Prime logo on the products, which indicates to potential customers that the order will be processed and shipped by Amazon in a timely manner. Thanks to this, many of them choose products with the Prime logo.